Watson's Economic Impact

Much has been claimed about the benefits to pupils in state education from January’s introduction of the 20% Education Tax (somewhat surprisingly, the Prime Minister even claimed earlier this week that it is also paying for affordable housing!) And yet, less than two terms in, and in England alone, data from ISC reveals that 13,000 pupils have left independent schools (over four times the Government’s estimate). Once pupil numbers are in for the rest of the year and the country, the Treasury sums are set to be even more materially adrift. It’s clear that the numbers for this flawed policy just don’t add up. Not only will the Government fail spectacularly to raise the promised income from the imposition of VAT but it will put serious strain on the public purse as more pupils are forced to leave the independent sector, filling already stretched state schools.

As Principal of George Watson’s College I know the sacrifices that many of our parents make to send their children to our school. It’s why a three year fee affordability strategy was one of my first priorities, committing to no fee increase in 2025, capped increases for the following two years and bridging support for any family for whom the imposition of VAT would put their child's place here at risk.

But the impact on Treasury coffers and state school spaces is only half the story. Those whose motivations are ideological and who delight in the demise of independent schools miss the significant economic impact we have on our communities and the benefits that are at stake as the sector shrinks.

Analysis conducted by Biggar Economics reveals that in 2024 George Watson’s College contributed £34.8 million in GVA (Gross Added Value) to the Edinburgh economy, supporting 580 jobs in the city. Across Scotland our impact rose to £44.7 million GVA and 680 jobs.

Educating nearly 2,500 pupils, our school saved the public purse a staggering £18.9m last year with £15.7 million of this directly relating to the savings made by City of Edinburgh Council from the school educating pupils in the area. In addition to the staff we employ directly, the school has a huge amount of valuable and long term supply chain relationships including catering, construction, engineering and cleaning, some for as long as 25 years. 

Beyond the clear economic benefits, Watson's delivers significant positive social impact through local partnerships and projects. In 2024 this included; food bank campaigns with the Edinburgh Food Project, an HIV education project with Castlebrae Community Campus and Edinburgh University, participation in the Engineering and Computer Science in Schools (ECSES) project which raised £305,000 to establish a computing curriculum at CastleBrae and Leith Primary and the Swire Chinese Language Centre Edinburgh - a £2.6m ten-year project which has educated 10,000 pupils from 44 primary and secondary schools.

Like many other independent schools this analysis demonstrates the positive contribution we make both locally and nationally. However, as admissions and pupil numbers fall due to the introduction of the politically driven education tax, these benefits are at significant risk. This will not only damage the Edinburgh economy but will also increase the taxpayer burden. It is time for Rachel Reeves and Bridget Phillipson to go back to the calculator, be honest with voters on the actual benefits that any school will ever see and to rethink this policy.

Lisa Kerr